• Egypt to build 1.1 GW solar plant with 200 MWh battery storage in Nagaa Hammadi
• $479.1 million in international funding led by BII, AfDB, and EBRD
• Project to supply 3,000 GWh annually, with first phase starting in 2026

Egypt has secured $479.1 million in international financing to build its first large-scale solar power plant with battery storage, a milestone in its energy transition. The $590 million project, located in Nagaa Hammadi in southern Egypt, will integrate 1.1 GW of photovoltaic capacity with 200 MWh of battery storage—unprecedented at this scale in the country.

The funding covers nearly 80% of the total project cost and is led by British International Investment (BII), the African Development Bank (AfDB), and the European Bank for Reconstruction and Development (EBRD). The project uses a blended finance structure, combining concessional loans, guarantees, and grants to support development of critical energy infrastructure.

The AfDB is contributing $184.1 million, with $125.5 million from its core resources and nearly $40 million from climate-related partner funds including Canada-AfDB, SEFA, and CIF. The EBRD is providing up to $173.5 million, supported by a European guarantee (EFSD+) and a $6.5 million grant. BII is injecting $100 million in the form of a concessional loan and a $15 million repayable grant to reduce battery system costs, which are crucial for grid stability.

The project will be rolled out in two phases starting in 2026. It is expected to generate about 3,000 GWh of electricity annually, which will be sold under a 25-year power purchase agreement to the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.

According to the AfDB, this initiative sets a benchmark for structuring green investments in Africa. “It demonstrates that well-structured financing can make complex projects economically viable, essential for decarbonization,” said Wale Shonibare, Director of Financial Solutions, Energy Policy and Regulation at the AfDB.

The solar plant is expected to reduce CO₂ emissions by 1.4 million tons annually, contributing to Egypt’s goal of raising the share of renewables to 42% of its energy mix by 2030.